New measures for passive residents in Andorra
The Government of Andorra is working on a new proposal aimed at modifying the investment conditions for passive residents in the country. The main measure involves increasing the minimum initial investment from €600,000 to €800,000 for these non-profit residents. Additionally, there is a plan to restore the banking and insurance deposits, allowing these residents to reinvest in various financial products — an option that was eliminated with the enactment of the previous omnibus law.
These initiatives aim primarily to ease the pressure on the real estate market, which has become strained recently, and to promote more equitable access to housing for Andorran citizens.
Political and social context
In response to the proposed modification of the immigration law by the parliamentary group Concòrdia, the Minister of Presidency, Economy, Labour, and Housing, Conxita Marsol, highlighted the importance of these measures for the economic and social balance of the Principality.
Opposition parties have expressed their intention to prevent passive residents from investing the minimum amount of €600,000 in real estate. They even propose increasing this figure to one million euros, aiming to reduce real estate pressure and improve housing access for Andorran residents.
Opposition stance
Concòrdia’s councilor, Núria Segués, argued that this measure aims to “reduce real estate market pressure and improve housing access for Andorrans.” Similarly, opposition leader Cerni Escalé stated that encouraging investment in properties that tension the local market doesn’t make sense.
Government’s reaction
Minister Marsol, on her part, expressed disapproval of how the proposal was presented, without prior dialogue, and showed her commitment to eliminate the real estate investment incentive and her willingness to negotiate within the legislative committee.
Negotiations and parliamentary dialogue
Prime Minister Xavier Espot expressed openness to dialogue to reach an agreement that considers balanced growth for the country. However, the immediate presentation of proposals by Concòrdia surprised many political actors, including members of the Government and the Demòcrates group.
Conxita Marsol emphasized the need to discuss each party’s intentions with these measures, noting that the Government is working on its own proposal and seeking a balance in the current regulation.
Potential increase of the minimum investment
Regarding the possibility of accepting the proposal to raise the initial mandatory investment to €1 million, Minister Marsol was open to debate, recalling that the current €600,000 was already a significant advance when initially established.
This approach also has support from Concòrdia, which considers it crucial to reach agreements when there is no majority in the parliament for the approval of measures.
Proposal to improve integration and social cohesion
Beyond changes in passive resident investments, the parliamentary group Concòrdia has presented a bill focused on promoting the integration and reception of newcomers to Andorra.
This initiative aims to preserve Andorran identity and strengthen social cohesion by establishing an initial reception service under the Ministry of the Interior. Its functions will include:
- Information about the rights and duties of residents in Andorra.
- Guidance on available healthcare and educational services.
- Initial advice on administrative regulations.
- Mandatory excursions for permanent immigrants to familiarize themselves with the territory, institutions, language, and culture of Andorra.
- Providing two catalogs: one with active associations in the Principality and another with information on festivals, traditions, and historical heritage.
As Cerni Escalé stated, “You can’t love what you don’t know,” emphasizing the importance of knowledge as a foundation for effective integration.
Conclusion: Impact for those considering moving to Andorra
These modifications to the rules for passive residents and the focus on social integration reflect the Andorran Government’s commitment to managing sustainable growth, balancing foreign investment with housing accessibility for its citizens.
If you’re thinking about moving your residence to Andorra, investing, or simply want to learn more about current legal and fiscal conditions, it’s essential to stay informed about these changes to make informed decisions aligned with the current regulations.
Additionally, you can explore more useful information about taxes in Andorra, life and cost of living in Andorra, and other relevant aspects such as the healthcare system and procedures for moving management.